"The Nazi movement was not a uniquely German event; it is a uniquely human event. And such a dark movement remains in our hardened hearts to this day. When human beings, for whatever reason and rationale, decide that it is necessary and expedient to cast aside their moral principles and their conscience, and in the pain of their humanity make themselves into beasts, then the will to power and its madness is unleashed upon them. No one, no people, is safe from this awful tragedy." Jesse

06 January 2015

Gold Daily and Silver Weekly Charts - Wooden Ships

“You cannot go on 'explaining away' for ever: you will find that you have explained explanation itself away. You cannot go on 'seeing through' things for ever. The whole point of seeing through something is to see something through it...

In a sort of ghastly simplicity we remove the organ and demand the function. We make men without chests [strong hearts for honor and truth] and expect of them virtue and enterprise. We laugh at honour and are shocked to find traitors in our midst.”

C.S. Lewis, The Abolition of Man

There was some intraday commentary on the NAV Premiums of Precious Metals Funds here.

Gold and silver had a pop rally today out of the 1200 bound and up to the next big level of resistance, as can be seen on the chart below.

Silver is in a similar position, but gold seems to be leading the way this time.

If the metals break out, look for silver to get some serious legs. But in this long bear market that is one big 'if.'

In checking some things today, I noticed that JNUG, the triple junior miners ETF, has almost doubled since Christmas Eve. Live by beta, die by beta.

Friday is a Non-Farm Payrolls Report. The last time the metals were smacked, they rolled them up higher, got some specs in with stops, and then just smacked them down, hard.

When you are able to rig so many global markets with virtual impunity, many possibilities are open to you. Pick a quiet hour and drop more tonnes of paper metals than a miner can produce in real bullion in a year. Why not? It is only money, and the Fed can print more of it. And they would be as gods.

So, the only thing that really matters to the gold and silver bulls now is a follow through to break the bearish downtrend. This will put some proper regards back in the Street, but we are not there yet.

The political neo-cons and the economic neo-liberals are riding high, heedless, invincible, winning.

What could go wrong?

Have a pleasant evening.

"The head rules the belly through the chest— the seat, as Alanus tells us, of Magnanimity, of emotions organized by trained habit into stable sentiments. The Chest-Magnanimity-Sentiment— these are the indispensable liaison officers between cerebral man and visceral man.

It may even be said that it is by this middle element that man is man: for by his intellect he is mere spirit and by his appetite mere animal. The operation of The Green Book (a book promoting relativism) and its kind is to produce what may be called Men without Chests. … A persevering devotion to truth, a nice sense of intellectual honour, cannot be long maintained without the aid of a sentiment... It is not excess of thought but defect of fertile and generous emotion that marks them out. Their heads are no bigger than the ordinary: it is the atrophy of the chest beneath that makes them seem so."

Le Propriétaire

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Need Little - Want Less - Love More

The Banks must be restrained, and the financial system reformed, with balance restored to the economy, before there can be any sustainable recovery.

"In the Incarnation the whole human race recovers the dignity of the image of God. Thereafter, any attack even on the least of men is an attack on Christ, who took on the form of man, and in his own Person restored the image of God in all. Through our relationship with the Incarnation, we recover our true humanity, and at the same time are delivered from that perverse individualism which is the consequence of sin, and recover our solidarity with all mankind." Dietrich Bonhoeffer

LET US COMMEND OUR PAST TO HIS ABUNDANT FORGIVENESS, AND TRUST OUR FUTURE TO HIS KINDNESS AND TENDER MERCY. LET US PERMIT OURSELVES TO BE FASHIONED ACCORDING TO HIS WILL, NOT FOR HIS SAKE, BUT FOR OURS. REMEMBER TO FEED THE LEAST OF HIS CREATURES, THE BIRDS AND ANIMALS. AND THE HEARTS OF THOSE YOU MEET, WITH A KIND WORD AND A SMILE.

"A credibility trap is when the managerial functions of a society have been sufficiently compromised by corruption so that the leadership cannot reform, or even honestly address, the problems of that system without implicating a broad swath of the powerful, including themselves.

The moneyed interests and their aspirants tolerate the corruption because they have profited from it, and would like to continue to do so. Discipline is maintained by various forms of soft financial rewards and career and social coercion."

These are personal observations about the economy and the markets. In providing information, I hope this allows you to make your own decisions in an informed manner, even if it is from learning by my mistakes, which are many. As a standing policy I never provide individual investment advice to anyone. I will only occasionally disclose my personal positions for purposes of illustration. Understand that my own circumstances could differ greatly from your own, and therefore what is suitable for me may not be suitable for you. My comments are intended to be reflection on general macro financial and economic events and trends.